Following a major reform process that started in 2001, the Turkish economy not only recovered from a severe crisis, but also resurged more or less resilient to the global financial crisis. Structural reforms played a particularly important role in setting the new rules for the economic governance, which helped guard the market from external shocks. This paper suggests that some of these structural reforms have been short-lived, rendering the Turkish economy prone to fundamental risks. It elucidates some of the political dynamics that bring about such a process of reversion.

Paper produced within the framework of the project Turkey, Europe and the World.